Starting this past Monday, banks here in California can't foreclose on a mortgage without either renegotiating the loan or giving the homeowner three months notice.
There have been more than 365,000 foreclosures in California since 2007, with many more already scheduled. We've been getting about 80 to 90,000 foreclosure filings every month...one every 30 seconds.
Even supporters acknowledge the California Foreclosure Prevention Bill won't prevent thousands of additional foreclosures, but it's an important step towards a systematic review of delinquent home loans. Lenders would at least have to show they had tried to modify the loans.
If the bank doesn't renegotiate, the homeowner still has 90 days until the bank can take the house. That warning period might give some people having trouble with a mortgage the chance to come up with other options.
The bill is similar to the Obama administration's Making Home Affordable Program that began in March. Both encourage lenders to cut interest rates or rewrite loans to affordable levels.
1 comment:
Hello. My wife and I bought our house about 6 months ago. It was a foreclosure and we were able to get a great deal on it. We also took advantage of the 8K tax credit so that definitely helped. We did an extensive remodeling job and now I want to refinance to cut the term to a 20 or 15 year loan. Does anyone know any good sites for mortgage information? Thanks!
Mike
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